A third of EU banks currently do not provide an instant payments service, and many are feeling pressure from the January 2025 deadline, based on recent research findings. A survey conducted by RedCompass Labs, which involved 200 payment professionals at EU banks, revealed that 58% of institutions without an instant payments service view the deadlines as unrealistic, while a third express uncertainty about meeting these timelines.
Despite these challenges, nearly three-quarters (77%) of respondents believe that the advantages of instant payments surpass the associated costs. Additionally, just over half (55%) intend to make instant payments the default option for their clients.
The report, titled So You Think You’re Ready for SEPA Instant?, also highlights that banks may not fully grasp the extent of processing requirements. Although many banks aim to handle between 101-300 payments per second, bulk payment files can contain hundreds of thousands of payments. As a result, RedCompass suggests that banks should be prepared to process at least 1,000 payments per second.
Furthermore, 76% of the surveyed banks expect their IT budgets to rise in order to comply with the new SEPA regulations, estimating an average increase between €1 million and €3 million per bank.
“The EU’s new regulation indicates that the instant payments revolution has officially arrived in Europe," remarked RedCompass Labs CEO Tom Hewson. He noted that while there is understandable concern regarding the urgency of the timelines, there may also be an underestimation of the required increase in processing capacity and investment.
Hewson pointed out that since there is no one-size-fits-all solution for banks, it is likely that they will explore alternative methods that do not necessitate changes to their core banking systems.